Why are exports included in the estimation of domestic income?

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Solution

Exports are included in the estimation of domestic income because exports are a part of domestically produced goods and services, or because exports are a part of goods and services produced within the domestic territory of a country. They are only sold outside the country.

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Similar questions

Why are imports considered as a negative item in the estimation of domestic income?

(a) Why are pensions included in national income but not old age pensions ?

(b) Calculate gross domestic product at market price using production method and income method:

Q. Are the following a part of a country's 'net domestic product at market price'? Explain.
(i) Net indirect taxes
(ii) Net exports
(iii) Net factor income from abroad
(iv) Consumption of fixed capital.

Q. Very Short Answer Type Questions:
Why are imports not included in the estimation of national income?

(a) From the following data compute net value added at factor cost:

$\begin{matrix} Items & Domestic sales & Subsidies & Purchase of raw material & Exports & Depreciation & Import of & Net in domestic market & indirect taxes In Crores & 2500 & 40 & 500 & 200 & 100 & 600 & 60 \end{matrix}$

(b) Intermediate goods and corporate tax are included in national income indirectly. How ?

Calculate $G N P_{m p}$

(a) By Income Method

(b) Expenditure Method

$\begin{matrix} (a) & Rent & 40 (b) & Private Final Consumption Expenditure & 800 (c) & Net Exports & 20 (d) & Interest & 60 (e) & Profit & 120 (f) & Government Final Consumption Expenditure & 200 (g) & Net Domestic Capital Formation & 100 (h) & Compensation of Employees & 800 (i) & Depreciation & 20 (j) & Net Indirect Taxes & 100 (k) & Net Factors Income From Abroad & (-) 20 \end{matrix}$

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